Tax Preparer Registration – 4 Facts Everyone Needs to Know

According to the IRS, millions of Americans usein the spring of 2011, will be available online, and
tax preparers every year to help them with theirwill be open book.  Each tax preparer will have to
income taxes.  However, the help you've beenpay another fee to take the tests.
paying for is about to change.  Starting in4. As part of the tax preparer registration, each
September, the IRS is going to begin enforcingpreparer will also be required to take continuing
strict new tax preparer certification rules.  All ofeducation classes.   To comply with this part of
these tax preparer regulations will take effect inthe certification, each tax preparer will have to
the 2011 tax season.pay for the classes, in addition to the registration
The IRS says this tax preparer regulation isand test fees.  Each tax preparer will have to
designed to make sure that Americans havecomplete 15 hours of continuing education every
more capable tax assistance.  However,year.
opponents of the changes say they're hurting the5. Once the tax preparer registration is complete,
tax preparer industry by adding unnecessaryeach preparer is subject to the ethical rules
fees.  So, what are the facts?created by the Department of Treasury. 
Here's what the new tax preparer certificationOriginally, these rules were only intended for
entails:accountants, attorneys, and enrolled agents.
1. Starting on September 1, 2010, all tax preparersNeed Help? The National Board of Tax
must register with the IRS.  A tax preparer'sPractitioners is considered the voice of the
registration will last for three years, and ofindependent tax preparer. They are offering a
course, there's a registration fee.  According tofree two-hour workshop for tax professionals
the IRS, each tax preparer will have to paythat will help them with the registration process.
$75-$300 every three years to keep theirTo learn more about National Board of Tax
registration current.Practitioners, visit
2. During the tax preparer registration process,So, what happens if you don't comply with the
the IRS will check to make sure that eachnew tax preparer certification rules?  The IRS
applicant does not have a criminal background andsays it will investigate tax preparers who try to
actually pays his own taxes.  Then, the taxoperate without registering, and there will be
preparer will be given a PTIN, or a Preparer Taxpenalties, but they haven't said exactly what
Identification Number.  That's the number they'llthose penalties will be.  As for consumers, they
put on your signed tax form before it's sent towill be able to check a new tax preparer
the IRS.certification database, to see if their service has
3. As part of this tax preparer certification, eachsuccessfully completed the tax preparer
registered tax preparer will have to passregistration process.
competency tests.  The tests, which should begin